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On Friday, the dollar reaches its strongest levels in a month versus many of its widely traded rivals, as better-than-expected U.S. economic data has supported anticipations that the key U.S. rates could rise sooner than expected.

Major Currencies

Mid-morning in New York, according to EBS via CQG the euro was at $1.4621 from $1.4729 late Thursday. The dollar was recorded at Y89.63 from Y88.21, while the euro was at Y131.09 from Y129.97. The British pound was at $1.6230 from $1.6267. Whereas the dollar was at CHF1.0348 from CHF1.0263.

Dollar Index

The Dollar Index, was at 76.591 from 76.011. This index tracks the greenback against a trade-weighted basket of currencies. Since early November the index is at its highest levels, showing the dollar’s broad strength against its rivals.

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On Monday morning in New York the dollar recovered some of its earlier losses as investors continue to fret over Dubai’s debt crisis despite of the United Arab Emirates’ move of providing funds to local banks.

Safe-haven buying supports Greenback

On the day the U.S. currency remains down against most major rivals, while safe-haven buying has once again provided support to the greenback.

As weaker equity prices tend to erode demand for riskier assets, including the euro and other higher-yielding currencies, there are possibilities that the greenback will take further cues from U.S. stocks.

Major Currencies

According to EBS via CQG, in Monday morning trading, the euro was trading at $1.5010, as compared to $1.4955 late Friday.

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On Thursday the dollar is still rising after midday in Europe. There are currently two factors that are driving this rise in dollar. One is the fear of a debt default by Dubai World and the other is talk of intervention by the Bank of Japan and suspected intervention by the Swiss National Bank.

Dollar reversed from recent sharp fall

This has reversed the dollar’s recent sharp fall which took it down to a 14-year low against the yen during Asian trading as investors continued to worry about how long U.S. interest rates will stay at low levels.

The dollar had shown a drop also due to the reports that Russia is planning to diversify some of its foreign exchange reserves into the Canadian dollar.

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As the U.K. posted its worst deficit figures since the measurement start, the pound had a negative week against the U.S. dollar.

This has decreased the attractiveness for the British currency which has performed positively in the week before.

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As falling stocks in the U.S. and Europe reduced risk appeal, the euro gave back some recent gains against its major rivals. Earlier, the 16-member currency against the dollar and pound had extended multi-month highs .

European currency has overtaken the greenback

Earlier in the day, as Iran’s central bank chief said the European currency has overtaken the greenback as the main currency of the country’s foreign reserves, the euro continued its attack against the dollar.

Latest survey from the Centre for European Economic Research

In economic news, the latest survey from the Centre for European Economic Research or ZEW showed today that there has been a drop 1.7 points to 56 in the German economic sentiment in October from 57.7 in the prior month. The reading that was anticipated was 58.8. But, the index stood well above the historical average of 26.7 points.

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